Categories: Market Overview

Oil set to end week lower on coronavirus resurgence fears

Oil prices edged higher on Friday but were on track for their first weekly fall in seven as new U.S. coronavirus cases spiked, raising the prospect of a second wave hitting demand. Brent was up 27 cents, or 0.7%, at $38.82 a barrel by 1204 GMT, having lost more than $1 earlier in the session.

After falling more than 5% on Friday, West Texas Intermediate was up 19 cents, or 0.52% to $36.53 a barrel. Both contracts ended around 8% lower on Thursday. The oil benchmarks are heading for weekly declines of more than 8%, their first after six weeks of gains which have lifted them off their April lows. Fears that the coronavirus pandemic may be far from over has brought the rally to a halt, with about half a dozen U.S. states seeing a spike in new infections.

Barclays on Friday raised its oil price forecasts for this year by $4 per barrel, citing a bigger deficit in the second half of the year, although it expressed caution on a slow recovery in the near term.

OPEC+ cut oil supplies by 9.7 million barrels per day (bpd), about 10% of pre-pandemic demand, and agreed last weekend to extend the reduction. U.S. crude and gasoline stockpiles grew last week, government data showed. U.S. crude inventories hit a record 538.1 million barrels, as cheap imports from Saudi Arabia flowed into the country.

Oil set to end week lower on coronavirus resurgence fears, Reuters, Jun 12

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team
Tags: oil

Recent Posts

Nasdaq 100 Wave Analysis 23 December 2024

- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…

17 hours ago

USDJPY Wave Analysis 23 December 2024

- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…

17 hours ago

US indices: has the bullish trend broken?

The recent declines in US indices may have broken the bullish trend, indicated by technical…

22 hours ago

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

1 day ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

1 day ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

4 days ago

This website uses cookies